Back in 2021, El Salvador took the first step into making Bitcoin legal tender. It defied the establishment by proving BTC can be used as an alternative to Fiat. Set ourselves forward 4 years later, and now El Salvador is regretting its decision. It made a deal with the IMF, in exchange of limiting its involvement with the world's beloved cryptocurrency. I guess all good things come to an end.
I don't think that El Salvador failed to make Bitcoin legal tender because the decision only provides an option for those who want to make Bitcoin an alternative means of payment.
We know that El Salvador made a deal with the IMF in terms of borrowing money at an agreed value and agreement. Those who know better are those who are there, we only follow the media coverage.
At least, El Salvador has opened up space and El Salvador has not changed the legal tender status of Bitcoin. There could be other goals that we don't know about behind their agreement with the IMF.